By Paul A. Harris
Portland, Ore., Oct. 30 – Vector Group Ltd. priced a $325 million issue of eight-year senior notes (B2/B-) at par to yield 10½% on Tuesday, according to an informed source.
The yield printed on top of yield talk.
Earlier guidance was 10¼% to 10½%, a trader said.
Jefferies LLC was the bookrunner.
The Miami, Fla.-based holding company plans to use the proceeds to repay its convertible notes due 2019 and for general corporate purposes.
Vector Group is engaged in the manufacture and sale of cigarettes in the United States through subsidiaries Liggett Group LLC and Vector Tobacco, as well as real estate operations conducted through New Valley LLC.
| Issuer: | Vector Group Ltd.
|
| Amount: | $325 million
|
| Maturity: | Nov. 1, 2026
|
| Securities: | Senior notes
|
| Bookrunner: | Jefferies LLC
|
| Coupon: | 10½%
|
| Price: | Par
|
| Yield: | 10½%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2021, then callable at 105.25
|
| Equity clawback: | 40% at 110.5 until Nov. 1, 2021
|
| Trade date: | Oct. 30
|
| Settlement date: | Nov. 2
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 10½%
|
| Marketing: | Roadshow
|
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